Tennessee Farmers Cooperative (TFC), LaVergne, Tenn., reported a net margin of $10.6 million on sales of $567 million for the fiscal year ending July 30, 2010, a huge turnaround from the near break-even margin of $147,000 on sales of $562 million posted for the prior year. Inventory write-downs and devaluation in fertilizer, feed ingredients, and glyphosate contributed to the year-ago downturn. TFC said that in 2010, all departments were profitable.
Total patronage paid to members in 2010 was $10.25 million, 30 percent of which was cash. The payment, combined with member programs, and retired reserves totaled $6.5 million, compared to the ten-year average of $7.5 million. TFC did not pay patronage for the 2009 year.
TFC continued to grow in 2010, with new business across the border into other states. New associate members include Limestone Farmers Cooperative, Athens, Ala., which now operates the former Giles Farmers Cooperative in Pulaski, Tenn.; Arkansas Valley Farmers Association, Russellville, Ark.; and Augusta Cooperative Farm Bureau Inc., Staunton, Va.
In addition, TFC subsidiary ADI Agronomy added five new locations in 2009, and now operates 11 full-service retail agronomy centers in highly concentrated row-crop areas of Missouri, Arkansas and Kentucky.
TFC expects a new Stockdale’s retail store to open in Bowling Green, Kentucky, this spring. The two existing Stockdale stores are in Hixson and Covington, Tenn. TFC said these two recorded a 5.21 percent sales increase in 2010 over 2009 while recording a positive net margin. Stockdale’s is TFC’s foothold in the farm and home store market, focused on consumer products and the growing “hobby” farm market. It expects to locate these stores in areas without a co-op presence or where a co-op wants to join forces with TFC in the business.
TFC said it has also added a new 3,000 st liquid fertilizer storage tank and loading facility at LaVergne to better serve its middle Tennessee members.
TFC has also announced that it has inked a new crop protection supply agreement with Winfield Solutions, a unit of Land O’Lakes Inc. Winfield is the parent company of Croplan Genetics seed brand, which TFC has been selling for the past two years.
TFC said the new deal will give members access to a larger selection of products and makes TFC more of a source to be reckoned with in this highly competitive market.
Under the deal finalized in December, TFI will source the majority of its crop protection products through Winfield. The deal will change TFC’s relationship with traditional crop protection supplier Universal Crop Protection Alliance (UCPA), where it has been obtaining most of these products. However, TFC says while it will remain an active UCPA member and continue to support it regarding animal health, twine, and the Heritage Trading Co., UCPA will no longer be the primary source for crop protection products.